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Facebook's Virtual Reality Buy Turns Off Investors: StockTwits

NEW YORK (TheStreet) -- Facebook's(FB - Get Report) Mark Zuckerberg is planning for a future that looks a lot like the movie Minority Report. Investors on StockTwits.com aren't thrilled with the company's leap into science fiction.

The social networking giant announced late Tuesday that it will acquire virtual-reality headset maker Oculus VR for $2 billion. In a conference call discussing the mostly stock deal, Zuckerberg described the purchase as a "long term bet on the future of computing."

(FB - Get Report) Regardless, Zuck already said the acquisition is a long-term investment. As of now, it is nothing...

Oculus is currently focused on games. But Zuckerberg sees a future where virtual reality devices are the way people interact with the Internet. Instead of mobile devices buzzing in pockets, people will have wearable virtual reality technology, perhaps embedded in fashionable eyeglasses like Google's(GOOG) coming product Google Glass.

Facebook shares opened in the red Wednesday morning and fell 1.7% by 10:30 a.m. Eventually Facebook shares were down 6.9% at close. Ouch.

Investors worried that the purchase, for $400 million in cash and 23.1 Million shares of Facebook valued at $1.6 billion, was far overvalued -- especially given that it's unlikely to make money for Facebook in the short term.

(FB - Get Report) Anybody remember the Facebook phone? Oculus Rift will be another similar fail for Facebook. Working in a wrong direction

"The bear camp believes that the recent multi-billion dollar acquisitions in the industry indicate that we have jumped the shark, indicating a mini bubble in valuation," wrote SunTrust's Robert Peck in a note to investors Wednesday.